Find comprehensive SWOT and PESTLE research reports across industries globally

Holistic Analysis Customized Solutions Top Quality

Get The Free Sample Complete

SWOT & PESTLE Analysis Report

This report is shared in order to give you an idea of what the complete SWOT & PESTLE analysis report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals. We also guarantee that you cannot find matched quality at such competitive and economic pricing.

Get the summary SWOT & PESTLE.com report delivered straight to your email inbox for free.Our insightful and holistic reports have helped corporate,academia and researchers to take their research forward. Like us on Facebook to stay updated with the latest published SWOT & PESTLE Report.

COMPANY PROFILE -Bombardier Inc.

Business Sector :Aerospace and Defense

Operating Geography :North America, Canada, Global

About Bombardier Inc. :

Bombardier is a multinational company headquartered in Montréal, Canada. It manufactures planes, trains and provides mobility solutions. Bombardier is listed on the Toronto Stock Exchange (BBD) and Dow Jones Sustainability World and North America Indices. In the fiscal year ended December 31, 2014, the company posted revenues of $20.1 billion USD. The Company has employee strength of approx. 74000 people.

Detailed SWOT Analysis of Bombardier Inc.

Strengths

1. Diverse product portfolio: Bombardier excels in the design and manufacturing of business aircrafts, commercial aircrafts, aircrafts structural components and rail technology. Both the divisions are approx. balanced and the diverse range of products has helped Bombardier to gain a high number of projects and increase its revenues. Bombardier’s rail business has one of the broadest and newest product offerings in the industry and its business aircrafts franchise is also the best globally. The company is in a strong position to reach more than $25 billion in revenues by 2020 through aerospace and rail businesses.

2. Quality financial results and de-risked business: Bombardier delivered strong results in FY16 exceeding its EBIT and free cash flow guidance. Its year-on-year cash performance also improved by $800 million. Further Bombardier successfully completed the first phase of the turnaround plan, refinanced the debt and extended their maturity dates to 2021. This has ensured that the Company has enough liquidity to execute the final two phases of our turnaround plan- building earnings and cash flow and subsequently deleverage its balance sheet from 2019.

3. Agile and superior organizational structure: In 2015, the Company has altered its organizational structure and increased the total number of divisions from 2 to 4. The Bombardier Aircraft (BA) division has been divided into 3 segments – Bombardier Business Aircraft, Bombardier Commercial Aircraft and Bombardier Aerostructures and Engineering Services. These along with Bombardier transportation division has led to a more agile and improved organizational structure in order to improve the efficiency and performance of the company.

3. Global Presence: The Company has a wide global presence. It won’t face risk of fewer customers because its customers include Europe, North America, Asia Pacific and rest of the world. 75.12% of its revenues were generated in Europe and North America region while 93.51% of the labor force was employed in the same regions in 2014.

4. Clear strategic focus for growing revenues and earnings: Bombardier has made aerospace investments including R&D over the past few years the benefits of which, it has started to realize. Further, the company will generate revenues from its $30 billion rail backlog as of FY16 and will also capture additional value related to servicing large installed fleets in both rail and aerospace businesses. The company has 7,000 aircraft in service and more than 100,000 train cars in operation as of December 2016. This strategic turnaround plan will help in cost reduction and the generation of revenues and powerful earnings acceleration.

Detailed Pestle Analysis of Bombardier Inc.

Political

1. Political stability in major markets: Political stability plays a major role in making the business environment conducive. Bombardier’s major markets include North America, Europe and China where it expects to get maximum business in the coming decade. In the business jet segment, North America is expected to receive the greatest number of new deliveries in the 10-year period (2015-2025) with 3,930 aircraft, followed by Europe with 1,530 aircraft. The governments of most of the nations in the above geographies are stable at present. Therefore, the political aspect in terms of stability for Bombardier is positive.

Economic

1. Increase in GDP leading to increase in air-travel demand: It has been observed from Bombardier regional penetration curves, that there is a strong correlation between macroeconomics and air travel demand. Worldwide GDP growth is forecasted at 2.5% CAGR for the next 20 years. Mature economies such as North America and Western Europe are expected to grow in the range of 1.4% - 1.7% CAGR whilst South Asia and China will be the global growth leaders with 5.7% and 4.6% CAGR respectively. The continuous economic growth should increase the demand for air travel over the next 20 years.

2. Growth in non-traditional markets: Growth in non- traditional market will change the customer mix and the company expects 58% of its aircraft demand to come from regions other than North America and Central and Western Europe. For rail orders the expanding middle class will help to penetrate deep in the emerging markets.